Austin: Tesla has experienced a decline in earnings over the past several quarters, often falling short of already lowered expectations. CEO Elon Musk is now shifting focus towards robotaxis and robots, though he provided limited updates during the Q2 earnings call and pushed back some timelines.
Since late 2022, Tesla has been implementing price cuts to combat weakening demand, attributed to an ageing lineup and increasing competition. While new "affordable" EVs are anticipated, they are expected to be variants of current models.
In contrast, BYD has also reduced prices but has managed to maintain strong profit margins. The company's sales are accelerating, driven by a next-generation hybrid system and a range of new models. BYD recently inaugurated its first full assembly plant outside of China, located in Thailand, with several more international facilities planned.
In July, BYD achieved record sales, surpassing one million units over the past three months.
Following a significant surge, Tesla's stock has recently declined sharply due to the Q2 earnings miss and broader market issues. Meanwhile, BYD's stock has retreated from a previous buy point but remains the only EV stock showing gains in 2024, albeit modest ones.
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